Hawkish comments from the ECB have buoyed the Euro (EUR) higher Monday against the Australian Dollar (AUD) pushing to 1.6500 (0.6060) a fresh 7 week high in the cross as it extends off last week’s 1.6140 (0.6200). ECB’s Wunsch said he had no urgency to cut rates, while a 50-point cut at the December meeting looks the ticket pending incoming data.
Current Level: 0.6060
Resistance: 0.6100
Support: 0.6020
Last Weeks Range: 0.6131- 0.6196
The Australian Dollar (AUD) is setting up for the lowest weekly close against the British Pound (GBP) since August 2023 with price continuing to slip to 0.5040 (1.9840). Less than impressive UK Manufacturing and a slide in the Lloyds business barometer haven’t had much impact with overpowering sentiment towards risk off, a lot of this stemming from the upcoming US elections. Today’s Aussie CPI y/y should highlight drops in many consumer products with expectations the figure should fall to 2.9% from June quarters 3.8%. The Aussie may continue to weaken towards next week’s RBA.
Current Level: 1.9857
Resistance: 2.0000
Support: 1.9600
Last Weeks Range: 1.9358- 1.9640
The Australian Dollar (AUD) is setting up for the lowest weekly close against the British Pound (GBP) since August 2023 with price continuing to slip to 0.5040 (1.9840). Less than impressive UK Manufacturing and a slide in the Lloyds business barometer haven’t had much impact with overpowering sentiment towards risk off, a lot of this stemming from the upcoming US elections. Today’s Aussie CPI y/y should highlight drops in many consumer products with expectations the figure should fall to 2.9% from June quarters 3.8%. The Aussie may continue to weaken towards next week’s RBA.
Current Level: 0.5039
Support: 0.5000
Resistance: 0.5080
Last week’s range: 0.5090- 0.5165
The New Zealand Dollar (NZD) extended its run lower Monday off 0.5540 (1.8060) against the Euro (EUR) reaching 0.5515 (1.8130) this morning, an 11-week low. We have no tier 1 data publishing this week which means global macro themes will continue to dictate moves. On the chart we see support around current levels, any action below 0.5512 (1.8140) may signal further drops in the cross.
Current Level: 1.8122
Resistance: 1.8200
Support: 1.7850
Last Weeks Range: 1.7833 – 1.8071
The New Zealand Dollar (NZD) extended its run lower Monday off 0.5540 (1.8060) against the Euro (EUR) reaching 0.5515 (1.8130) this morning, an 11-week low. We have no tier 1 data publishing this week which means global macro themes will continue to dictate moves. On the chart we see support around current levels, any action below 0.5512 (1.8140) may signal further drops in the cross.
Current Level: 0.5518
Support: 0.5500
Resistance: 0.5600
Last week’s range: 0.5533- 0.5607
The New Zealand Dollar (NZD) has extended declines into Tuesday sessions falling from 0.4615 (2.1680) to 0.4590 (2.1800). The lowest weekly close since Brexit in June 2016 was 0.4565 (2.1900) in the cross, we expect this level to come into play over the short term as we head into next week’s Bank of England (BoE) policy announcement when we expect interest rates to cut from 5.00% to 4.75%.
Current Level: 2.1795
Resistance: 2.190
Support: 2.1500
Last Weeks Range: 2.1378- 2.1694
The New Zealand Dollar (NZD) has extended declines into Tuesday sessions falling from 0.4615 (2.1680) to 0.4590 (2.1800). The lowest weekly close since Brexit in June 2016 was 0.4565 (2.1900) in the cross, we expect this level to come into play over the short term as we head into next week’s Bank of England (BoE) policy announcement when we expect interest rates to cut from 5.00% to 4.75%.
Current Level: 0.4588
Resistance: 0.4650
Support: 0.4565
Last Weeks Range: 0.4609- 0.4677
The cost of living in Australia is poised today to show a 3-year low when inflation drops from 3.8% to around 2.9%. This would be the lowest since March 2021 and drop into the RBA’s target zone of between 2-3%. However, anyone expecting the RBA to drop their cash rate from 4.35% may still need to wait a while. Disappointment towards China’s latest stimulus measures is also weighing on the AUD this week with prices spiking to 0.9100 (1.0990) early morning. This being said- this upside in the kiwi should not be ignored with the RBNZ expected to cut half a percent later in November.
Current Level: 1.0981
Resistance: 1.1080
Support: 1.0950
Last Weeks Range: 1.1018 – 1.1065
The cost of living in Australia is poised today to show a 3-year low when inflation drops from 3.8% to around 2.9%. This would be the lowest since March 2021 and drop into the RBA’s target zone of between 2-3%. However, anyone expecting the RBA to drop their cash rate from 4.35% may still need to wait a while. Disappointment towards China’s latest stimulus measures is also weighing on the AUD this week with prices spiking to 0.9100 (1.0990) early morning. This being said- this upside in the kiwi should not be ignored with the RBNZ expected to cut half a percent later in November.
Current Level: 0.9104
Resistance: 0.9130
Support: 0.9025
Last Weeks Range: 0.9037 – 0.9076
The New Zealand Dollar (NZD) has continued to slide lower against the US Dollar (USD) starting the week around 0.5980 and dropping lower off the open to post 0.5960 as we head into Tuesday trading. Punters have been buying the big dollar on mass of late with consideration of uncertainty around what could eventuate in next week’s presidential elections. Also, the with the news that the Fed may peg back cuts if this week’s Non-Farm Payroll release comes in hot is also pushing the USD higher. The kiwi has dropped in value for the 5th straight week and now rapidly approaches long term support at 0.5850. With the RBNZ also expected to cut interest rates by 50-75 points at their next meeting in November it’s hard to see much upside in the pipeline. All those buyers of USD should consider anything around current levels.
Current Level: 0.5971
Support: 0.5870
Resistance: 0.6050
Last week’s range: 0.5972- 0.6083